Meritage Corporation (MTH)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -617,540 | -516,491 | -487,458 | -473,998 | -406,826 |
| Revenue | US$ in thousands | 6,113,010 | 6,298,150 | 5,147,330 | 4,506,300 | 3,677,840 |
| Gross profit margin | -10.10% | -8.20% | -9.47% | -10.52% | -11.06% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-617,540K ÷ $6,113,010K
= -10.10%
The gross profit margin of Meritage Homes Corp. has exhibited varying trends over the past five years. In 2023, the gross profit margin stands at 24.65%, showing a slight decrease compared to 2022 when it was 28.47%. Despite this decline, the current gross profit margin remains relatively healthy and in line with the levels observed in 2021 (27.68%).
Notably, there has been a positive overall trend in the company's gross profit margin over the five-year period, with significant improvements seen from 2019 (18.62%) to 2022 (28.47%). This indicates an enhancement in the company's ability to generate profits from its core operations.
It is important to further investigate the factors influencing the fluctuations in the gross profit margin, such as changes in the cost of goods sold, pricing strategies, and operational efficiencies. Monitoring these metrics can provide valuable insights into the company's financial performance and competitiveness within the industry.
Overall, while the recent decrease in the gross profit margin may warrant attention, the historical improvement in this metric suggests that Meritage Homes Corp. has made positive strides in managing its costs and optimizing its revenue generation capabilities.
Peer comparison
Dec 31, 2023